Noise redux helps a lot. Tape is noisier than digital recording (in most circumstances) and the noise builds up with each track. For example, and 8 track tape will have 8 tracks of the same noise. If you start bouncing those tracks to get more than 8, the noise builds up even more.
All that said, you *really* have to know what you are doing to get tape to sound better than digital. If you're just getting started I'd go with an inexpensive digital system to get the basics down before locking yourself into an 8-track tape studio.
If you want to jump right in, though, go ahead!! You probably won't regret it if you are serious about understanding the finer arts of recording. I'd recommend starting with a 2-track mixdown deck, though. Get whatever system you want for recording and mixing and mix down to the analog 2-track. That's the least expensive way to start learning about how tape works (tape compression, tape speeds, the different types, calibrating and maintaining the machine, etc.)
If I make my guess right, by your BBS name, you are starting a hip hop production studio. If so, recognize that few of your clients are likely to appreciate the extra work you are putting into getting that tape deck working properly. If anything, they're going to wonder why you are using that old thing instead of that fancy pro tools thing-a-ma-jig they've been hearing so much about. And they're going to wonder why you are charging them so much more the tape. $40?! Just for the tape?!
Have fun,
Chris